The risk-off mood, sliding US bond yields assisted gold to gain some traction on Wednesday. The underlying bullish sentiment around the USD kept a lid on any further gains for the metal. Gold quickly reversed an early Asian session dip to weekly lows and was last seen trading with modest gains, just above the $1730 level. A combination of supporting factors assisted the precious metal to gain some traction on Wednesday and recovered a part of the previous day’s losses. This also marks the first day of a positive move in the previous three, though any meaningful upside still seems elusive. Investors remained cautious amid a spike in COVID-19 infections and a string of renewed lockdown measures in Europe. This was evident from a weaker trading sentiment around the equity markets, which was seen as one of the key factors that benefitted the safe-haven XAU/USD. The risk-off mood, along with easing inflation worries contributed to the ongoing slide in the US Treasury bond yields. In fact, the yield on the benchmark 10-year US government bond retreated further from over one-year tops and extended some additional support to the non-yielding yellow metal. The Fed Chair Jerome Powell, testifying before the House Financial Services Committee on Tuesday, downplayed the risks that economic growth would spur unwanted inflation. Powell, however, remained optimistic about the outlook and expected the economy to surge in the coming months. Meanwhile, the supporting factors, to a larger extent, were offset by the underlying bullish sentiment around the US dollar. This seemed to be the only factor capping gains for the dollar-denominated commodity, warranting some caution before positioning for any further gains. Market participants now look forward to the release of flash PMI prints from the Eurozone and the US. This, along with Powell’s second day of testimony before the Senate Banking Committee, might influence the USD price dynamics and produce some trading opportunities around the XAU/USD. Technical levels to watch FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next AUD/USD hits fresh seven-week lows sub-0.7600 as risk-aversion remains at full steam FX Street 2 years The risk-off mood, sliding US bond yields assisted gold to gain some traction on Wednesday. The underlying bullish sentiment around the USD kept a lid on any further gains for the metal. Gold quickly reversed an early Asian session dip to weekly lows and was last seen trading with modest gains, just above the $1730 level. A combination of supporting factors assisted the precious metal to gain some traction on Wednesday and recovered a part of the previous day's losses. This also marks the first day of a positive move in the previous three, though any meaningful upside still seems… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.